Q2 2026 Equitable Holdings Inc Earnings Call Transcript
Key Points
- Equitable Holdings Inc (EQH) reported strong second-quarter 2026 results with non-GAAP operating EPS of $1.75, a 24% year-over-year increase, and is on track to exceed its 15% EPS growth guidance for the full year.
- The company achieved record assets under management and administration of $1.2 trillion, up 10% year-over-year, driven by positive net flows across all business segments and favorable equity markets.
- Shareholders of both Equitable Holdings Inc (EQH) and Corebridge approved the merger with over 97% voting in support, and the company remains on track to close the transaction by year-end 2026, which is expected to be at least 10% accretive to earnings and cash flow per share by 2028.
- AllianceBernstein (AB) returned to positive organic growth with $0.8 billion in net inflows, and its private markets AUM reached $91 billion, hitting its $90-$100 billion target over a year ahead of schedule.
- The company demonstrated strong capital return, with a 92% payout ratio in the second quarter, including $366 million of share repurchases, and expects to achieve its targeted 60%-70% payout ratio for the full year 2026.
- Equitable Holdings Inc (EQH) reported a net loss of $453 million in the second quarter, driven by noneconomic impacts from its hedge portfolio resulting from strong equity markets.
- The company's alternative investments portfolio produced a weak annualized return of slightly over 1% in the quarter, pressured by the lagged impact of first-quarter market declines on private equity holdings.
- The Corporate and Other segment reported a loss of $106 million, which was slightly higher than the range implied by full-year guidance, due to a larger-than-normal accrual for long-term compensation expense and modestly elevated mortality.
- The company's cumulative EPS growth rate since its 2023 Investor Day stands at 10%, slightly below its 12%-15% target range, and it expects to be at the low end of the range by the end of 2026.
- Equitable Holdings Inc (EQH) decided to sell its Employee Benefits business to The Hartford, acknowledging that the business is not yet profitable due to a lack of scale, which represents a strategic divestiture and a shift away from a previously pursued growth area.
Hello, everyone. Thank you for joining us, and welcome to Equitable Holdings, Inc. Second Quarter 2026 Earnings Call. (Operator Instructions)
I will now hand the conference over to Erik Bass, Chief Strategy Officer and Head of Investor Relations. Erik, please go ahead.
Thank you. Good morning, and welcome to Equitable Holdings Second Quarter 2026 Earnings Call. Materials for today's call can be found on our website at ir.equitableholdings.com.
Before we begin, I would like to note that some of the information we present today is forward-looking and subject to certain SEC rules and regulations regarding disclosure. Our results may differ materially from those expressed in or indicated by such forward-looking statements. Please refer to the safe harbor language on Slide 2 of our presentation for additional information.
Joining me on today's call are Mark Pearson, President and Chief Executive Officer of Equitable Holdings; Robin Raju, our Chief Financial Officer; Nick Lane
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